Reasons to run a crowdfunding campaign

THE TAKEAWAY: Crowdfunding can seem daunting, but there are lots of good reasons to give it a go. There are only a few times when crowdfunding might not be right for you.

You�ve got a specific thing you need to fundraise for

Crowdfunding campaigns work best when your supporters and donors exactly what they�re donating to. This could be something small, like a new laptop or car, or something huge like your organisations entire funding allocation for the year (it�s been done!) It means you have a specific target to work towards, so you and your supporters can create a strategy around the campaign .

It also gives your supporters something to say when they ask people to donate to them: �I like the work this organisation does, they need this thing, so please donate this much.� Your crowdfunder doesn�t always have to be something concrete, like a car or an office. It can be a staff member�s wages, or your insurance.

You�ll reach new audiences

Unlike a normal donations campaign, crowdfunding doesn�t require you to ask your supporters for money. Instead, you�re asking your supporters to ask others for money on your behalf. This means that news of your organisation�s work will reach people who you may not otherwise reach. Once they�ve donated to your cause, you may take the opportunity to connect them to your cause more directly.

Your supporters can engage with you in a new way

Your supporter base will be made p of individuals who have different capacities to give time and money. Crowdfunding opens up the opportunity for individuals to contribute to your organisation, without needing to commit a lot of money, with flexibility in when they spend their time fundraising. Crowdfunders can be particularly engaging if you coordinate teams, or host a challenge for your supporters to undertake.

You�ve got a good challenge idea

If your organisation or cause lends itself to a great challenge theme, bringing that challenge to life in the form of a crowdfunder can see a lot of engagement and awareness building. A challenge can be something which targets empathy, like Live Below the Line, or something which is physically demanding, like Oxfam�s Trailwalker, or something simple, like the Ice Bucket Challenge. For more information see our article on hosting a challenge.

You�ll have lots of fun

Whilst they�re hard work, crowdfunding campaigns pay off ten fold in the amount of fun they are. Unlike most other forms of fundraising, crowdfunding is a social activity, with multiple lines of communication running at the same time.

When not to run a crowdfunding campaign

Whilst we encourage any organisation to give crowdfunding a go if they�re eager, there are times when crowdfunding might not work in your favour.

When you�re resource poor
As we said, crowdfunders require a lot of time and effort. If you don�t have one or two people who can commit themselves to ensuring your crowdfunder runs smoothly, you risk a very public fizzer, which isn�t good for morale or publicity.
When you�ve just started acquiring supporters
Crowdfunders require at least a few committed supporters to get off the ground, so if you�re a new organisation which doesn�t have a committed supporter base, you�ll probably struggle to get people to fundraise.
If you haven�t figured out something specific or tangible to raise towards
If you don�t decide on a specific goal for your crowdfunder, it might fizzle. It helps to give your supporters a tangible fundraising target (not just the number) to help inform their fundraising efforts with people who don�t know your organisation well.